A weaker American dollar, which fell to a low four months, made gold more attractive for foreign buyers. The deterioration of the Greenback was driven by a weaker than expected non-farming letter gagrolls (NFP) report and growing speculation on the cut of the FED rate.
China continued his gold -colored spree for a fourth consecutive month in February, which indicates the constant demand for central bank for the metal. In the meantime, geopolitical risks and commercial insecurity offered further safe port support.
American banengaties and fed signals are the prospects of Gold
The American labor market showed signs of cooling, with the NFP data of February that reveal 151,000 jobs, under the predicted 160,000. This report enhanced the market expectations that the FED could start by June, with futures prices in around 78 basic points of relaxing this year.
Federal Reserve chairman Jerome Powell, however, hit a cautious tone and stated that the central bank needs “greater clarity” before she moves interest rates. Inflation problems remain an important problem, with upcoming CPI data that is expected to provide new insight into whether the price pressure is cooling.
Tarief uncertainty and economic sentiment in Focus
Trade tensions remain an important factor that influences gold. The US recently imposed new 25% rates in the field of import from Mexico and Canada, together with increased tasks on Chinese goods. A temporary exemption from auto rates for certain manufacturers has added a complexity, which means that markets are uncertain about the prospects in the long-term trade policy.